Mortgage enquiries rise to the highest in three years

IN ENCOURAGING news for the property sector, mortgage enquiries spiked 6.9 per cent in the June quarter, the highest level of growth in three years, according to credit reporting agency Veda.

The volume of inquiries increased from 1.9 per cent in the March quarter.

"The fact that the June quarter recorded the largest volume of mortgage enquiries in three years suggests house price growth is likely to remain in positive territory in the near term, for those states and regions experiencing inquiry growth,'' Veda general manager of consumer risk Angus Luffman said.

Mr Luffman said the level of interest in mortgages would translate to the market over the course of the next six to nine months.

Potential Queensland property buyers were more cautious, however, with enquiries increasing by 1.6 per cent for the June quarter.

"The results have reversed a negative trend of the preceding five quarters,'' Mr Luffman said.

"There is an underlying positive trend but we need to see a strong set of ongoing results.''

The volume of mortgage enquiries were at their highest in Western Australia (+15 per cent), New South Wales (+13 per cent), the Northern Territory (+10.3 per cent) and South Australia (+7.5 per cent), according to Veda's latest quarterly report.

The positive trend in mortgages was balanced by a reduction in personal loan applications, which dropped from 10.3 per cent to 6.3 per cent nationally.

Mr Luffman said the slowing demand for consumer credit could be attributed to a drop-off in vehicle sales.